Corporate governance regards the rules, principles, or laws through which a business or organization is controlled or regulated. Its existence is shown by the internal and external factors set by the various parties involved. Such members are the shareholders, government, the firm through its constitution, officers, customers, and other clients to the organization. From the reference company, a board of directors is used to give out the directives that the firm is to follow, in its operation to achieve results.
As at incorporation of Disney Company, the law allowed the board to consist of not less than eleven and not more than twenty-one directors. Directors are expected to be independent of the organization to devote their ability and integrity in guiding the control of the firm. The nature of customer governing arises from the agency relationship with the directors (Walt Disney Company, 2011). Management acts to supervise the working of subordinate staff like the chief executive officers and their continued renewal. The board is also entitled to the approval of all the major decisions involving finances as well as the management of the business. They are expected to provide detailed data concerning the operation of the firm to the various interested parties.
Decision-making entails proper analysis of the data from past or current transactions in focus on what is to be in the future. The financial statement from the summary of the firm transactions needs is accurate and well established. The management team consisting of directors has an obligation to ensure that the data analyzed is reviewed for accuracy. It is also necessary to prepare the statements on due dates prior to decision time. As the company has legal regulations, it calls for the preparation of statements complying with the set accounting and legal standards (Walt Disney Company, 2011). The documents prepared to give the detailed data must be covering the whole or general operations of the firm showing the completeness of the information.
Disney Company has to ensure an efficient flow of information to aid in quick and informed decisions made. Technology act to be the quickest mode to use. In this regard, the company has a media network structure to ease data flow. Blog sites are in a place where distant customers can communicate and place orders and reservations. In addition, the firm holds regular exchange programs through meetings and conventions that create interaction moments between the clients and the management. In return, the clients give suggestions, complaints, and approval to the services and products of the firm. The board then has the duty to ensure the failures are rectified and where suggestions are within reach, implement them.
Every business has an obligation on dealing with the various risks involved in the operation. The Disney firm security pack is outlined to serve in both the sites and parks. To inform the clients of the firm, it sets up safety training programs to reach the members in attendance also visiting the sites. From the interaction, the firm acquires data regarding any posing risk as given by the members. The firm also has contacts with other competing firms from where more information is shared across. This aids the constant consideration of clients in case of sudden changes in the operating climate since the firm has prior knowledge of the changing world.
For an effective business, feedback is required from the interested parties to the organization. This is made possible by the reports and returns given to the stockholders during the regular meetings. The directors are required to publish the final audited and approved final accounts through the press and in booklets to shareholders, in the meetings. The external parties can evaluate the business through the information on the press or sites that show the profit gains, as well as changes in comparison to prior years. Decisions like changes in management and other important decisions are also communicated through the networks. Well-defined governance creates a structure that works to the benefit of all parties.
References
The Walt Disney Company and Affiliated Companies. 2011. Corporate Governance guidelines. Web.